The Brazilian betting industry has seen a significant impact from Provisional Measure 1.394, which banned licensed sportsbooks in the country. Since the measure was announced by President Luiz Inácio Lula da Silva on September 25, more than 3,500 workers have lost their jobs, which constitutes about 23% of the entire workforce in this sector.
This information comes from a partial survey conducted by the National Association of Games and Lotteries (ANJL), with insights from various betting operators. On top of the layoffs, an additional 4,167 employees are currently on collective furlough, and ANJL anticipates that the total layoffs could rise to 5,600 within the next three months, representing 37% of employees in the sector.
The figures highlight the severe repercussions of the ban on thousands of Brazilian families relying on income from the betting industry. ANJL president Plínio Lemos Jorge emphasized the need for accurate data to assess the effects of the measure on workers and the businesses dependent on this industry.
Lemos Jorge pointed out that the term 'betting industry' reflects the diversity within the sector, which includes not just sportsbooks but also payment processors, marketing agencies, compliance firms, affiliates, and specialized media outlets. He lamented that many families are now facing job losses due to what some view as an unconstitutional move still pending review by the Supreme Federal Court.
In response to the provisional measure, the ANJL and the Brazilian Institute of Responsible Gaming have filed a lawsuit seeking to overturn the ban. They await a ruling on a preliminary injunction to suspend the measure, which could affect the status of the furloughed employees, potentially leading to permanent job losses. Lemos Jorge noted the critical urgency in reviewing the request to suspend the provisional measure, as it directly impacts many workers.
